Forex trend.

This term is often identified with the concept of a trend; in some ways they are similar, but in others there are differences.

A Forex trend typically characterizes the overall sentiment in the currency market, taking into account a fairly long period of time.

It's advisable to consider this factor when opening medium- and short-term trades. This approach will help avoid mistakes in choosing trade direction, thereby reducing the number of losing orders.

There are several ways to categorize Forex trends:

By duration:

• Medium-term - from one week to a month, implies that during this period one direction of price movement was predominantly maintained.

• Long-term - from a month or more, usually formed after the price fell or rose to the boundary level and made a reversal. For example, the situation with the EURUSD currency pair , which sometimes reaches the 1.4000 mark, and then begins to decline for a long time.

By direction:

• Ascending - a constant increase in price, if you compare the initial and end points of the time interval, the price in the final one will be higher than in the initial one.

• Descending - a gradual decline in the exchange rate of a currency pair over a certain period of time.

Unlike a trend, a tendency cannot have a horizontal direction; a flat state can only be characterized as a short-term phenomenon.

Trend and real trading.

Trends are a rather fickle phenomenon, but if you analyze a currency pair's chart for a week, you can easily determine the current trend. This should be taken into account when opening a trade. This rule is not always suitable for short-term trades lasting less than a few days.